The Case for Gold Miners: Why Supply Scarcity is Key

Sprott Asset Management’s Shree Kargutkar argues that March’s short-term volatility in gold should not deter long-term investors, citing structural supply constraints and declining ore grades that limit mining responses to higher prices. Despite gold trading in the high $4,000s, few new large mines have come online and mine lifespans are shorter than other metals, supporting a persistent supply-demand imbalance. Sprott recommends exposure to gold miners — especially via ETFs focused on large-cap and junior miners — as a way to capture potential upside if prices resume their advance. The piece is both market commentary and an institutional outlook that reinforces a bullish longer-term case for gold and miner equities, while noting short-term noise from geopolitical events such as tensions with Iran.